The pattern day trader (PDT) rule is gone. The SEC approved FINRA’s changes to Rule 4210 on April 14, 2026, and they took effect on June 4, 2026. Traders no longer need $25,000 in a margin account to make four or more day trades a week, and brokers no longer have to count day trades. A new intraday margin standard replaces it.
What the old PDT rule was
From 2001 until June 2026, you were labeled a pattern day trader if you made four or more day trades within five business days in a margin account, as long as they were more than 6% of your trades. Once flagged, you had to keep at least $25,000 in the account. Fall below it and you could not day trade until you added money. Many small traders hit the “three day trades a week” wall.
Old rule vs new rule
| Before June 4, 2026 | Now | |
|---|---|---|
| Day trade counting | 4+ in 5 days triggered PDT | No longer counted |
| Minimum equity | $25,000 | $2,000 (the standard margin minimum) |
| Buying power | Based on the prior day’s close | Based on real-time intraday margin |
| Deposits and intraday profits | Not counted toward day trading buying power | Can count in real time |
What it means for small accounts
- You can day trade with under $25,000 in a margin account, subject to your broker’s own rules.
- Brokers can still be stricter. The rule sets a minimum; firms can keep their own limits, and some are phasing in changes. FINRA’s phase-in period runs to October 20, 2027.
- Margin risk is still real. Real-time margin means losses reduce your buying power immediately, and a margin call can come during the day.
- Cash accounts are unchanged. The PDT rule never applied to cash accounts, but you still have to wait for trades to settle before reusing the money.
Does more freedom mean more profit?
Not by itself. Studies of retail day traders consistently find most lose money over time, and the old rule, whatever its flaws, slowed some people down. Without it, a written plan, a daily loss limit and position sizing matter even more. If you are new, start with our guide to trading hours and learn how fast-moving stocks can trap traders on both sides.
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Frequently asked questions
Is the PDT rule still in effect?
No. It ended on June 4, 2026, when FINRA’s amendments to Rule 4210 took effect.
Do I still need $25,000 to day trade?
No. The $25,000 pattern day trader minimum was eliminated. The standard $2,000 margin account minimum still applies, and brokers can set higher limits.
Does this apply outside the US?
No. It is a US FINRA rule for US broker-dealers. Canadian and other brokers follow their own regulators’ margin rules.
This article is general information, not financial advice.
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